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To reverse a decade of damaging overall factor efficiency, regional labour market policy is shifting from simple job production to managing active labor force shifts. Federal governments and employers are scaling short, modular training programmes and micro-credentials in data analytics and digital operations to gear up workers for emerging roles. Workplace-based learning and apprenticeship-style paths are becoming more common as firms integrate AI tools into daily workflows.
With oil prices forecasted to average $55-60 per barrel in 2026, local federal governments are heightening their concentrate on expenditure discipline and personal capital mobilisation. Financial policy is rotating towards the monetisation of state-owned properties in logistics, energies, and desalination to redirect funds towards higher-impact investments. While loaning via sukuk and sustainability-linked bonds is expected to increase to money tactical deficits, the focus remains on strengthening non-oil revenue structures.
PwC Middle East financial policy and method partner Jing Teow stated: "Having already mobilised capital and policy at scale, GCC governments are now focused on delivery. In 2026, the priority is strengthening economic resilience through more protected trade and investment relationships, reliable AI implementation, managed labor force transitions and disciplined fiscal policy in a more challenging and fragmented international environment.".
Saudi Arabia and UAE are poised to lead the Gulf area's financial growth in 2026, supported by strong private-sector performance, durable domestic need and restored investment momentum, according to the most recent ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to surpass most international regions peers next year, with regional GDP projection to grow by 4.4%. Throughout the GCC, non-energy activity is forecasted to expand by 4.1% in 2026, driven by strong labour markets, improving credit conditions and rising financial investment in technology and AI-related facilities.
Oil profits will be under pressure in the very first half of 2026, production is expected to increase again in the 2nd half of 2026, supporting the area's medium-term outlook, it specified. Saudi Arabia will stay a major factor to GCC momentum, with GDP forecast to grow 4.3% in 2026.
Growth will be supported by industrial expansion and policy reforms, consisting of relieved foreign ownership guidelines that intend to stimulate further investment. The fiscal deficit is forecasted to widen to 5.6% of GDP next year amid softer oil costs, while the recent five-year lease freeze in Riyadh aims to ease inflationary pressures, though it may constrain future housing supply.
Strong domestic fundamentalsThe UAE is also placed for another strong year of performance, with GDP projection to rise 5.6% in 2026 as non-oil sectors continue to expand. Tourist, trade and financial services stay key development drivers, supported by population development and continual domestic need. Dubai's economy grew 4.4% in the very first half of 2025, reflecting broad-based non-oil strength.

Oil production is expected to pick up again in the second half of 2026, matching continuous financial investment in facilities, innovation and global trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook strengthens how far the GCC has been available in structure varied, resilient and worldwide competitive economies.
Driving Regional Industrial Growth through StrategyScott Livermore, ICAEW Economic Consultant, and Chief Economic Expert and Managing Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are entering 2026 with strong structures. Saudi non-oil activity is acquiring pace, supported by robust need and rising investment, even as financial pressures increase.""The UAE continues to take advantage of strong domestic basics, a sharp uplift in government costs and sustained diversification efforts.
Driving Regional Industrial Growth through StrategyWhat identifies 2026 from preceding years is not just the acceleration of technological change, though that velocity is genuine, but rather a fundamental shift in how enterprises develop of their GCCs' purpose. The is expected to grow to four hundred thirteen billion dollars by 2040, however this development masks a more profound change.
Instead, they ask whether these centers drive innovation, own profit-and-loss obligation, and add to competitive distinction. In 2026, the most successful GCCs will act like internal start-ups, agile, cross-functional, insight-driven, and deeply aligned with global business outcomes. This shift from execution to ownership represents maybe the single most significant tactical recalibration in the GCC design's development.
This week, we're convening more than 3000 conferences in between financiers and 119 Gulf-listed companies with a combined worth of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're uniting investors, companies, exchanges, and policymakers to discuss what is altering in the region, and what comes next, including the growth and continuous development of the Gulf's capital markets, and the region's growing role in worldwide networks of capital and trade.
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